El Salvador plans to build the world’s first “city of bitcoins” – it will be funded by bonds backed by cryptocurrency. Country President Nayib Bukele said they would do this to stimulate investment in the country.
Speaking at an event in El Salvador, Bukele said the city, which is planned to be built in the eastern region of La Union, will receive geothermal energy from the volcano. No taxes will be levied inside it, except for VAT.
Half of the VAT levied will be used to fund bonds issued for the city’s construction, and the other half will be used to pay for services such as garbage collection. The public infrastructure of the city is estimated at about 300 thousand bitcoins.
Bukele added that the new city will be circular, with an airport, residential and commercial districts, and a central plaza that looks like a bitcoin symbol from the air.
Earlier, El Salvador became the first country in the world to accept Bitcoin as legal tender. As noted by CNN, Bukele is a popular president, opinion polls show that Salvadorans are skeptical of his love of bitcoin, and its uneven implementation has sparked protests against the government.
El Salvador plans to issue the first bonds in 2022, Bukele noted, suggesting that it will happen in 60 days.
“This will make El Salvador the financial center of the world,” he added. “To facilitate this process, the El Salvadorian government is working on a securities law, and Bitfinex will receive the first license to operate the exchange.”